Friday, June 10, 2016

An Experienced Knoxville Chapter 13 Attorney May Help You Keep Your Property

By Cameron S. Schippers


Usually when an individual declares bankruptcy others view it as a way to discharge all debt. This may be the case with a chapter 7 bankruptcy. But, it is not true in the case of filing a chapter 13. This is available to those with an income sufficient to support their current lifestyle and at the same time pay off their past debt. A Knoxville chapter 13 attorney can assist you in keeping a home and car.

Sometimes it is called a reorganizational bankruptcy. Your current income must be high enough to meet the courts approval. If denied, you are not able to file. You may be asked to take a course in credit responsibility.

The procedure will be complicated and your attorney will guide you through all the required steps. While you are in financial dire straits, making good decisions is difficult. An experienced lawyer will be understanding and offer the help you need.

Most will offer a no-obligation conference to decide if you want to hire him or her. You can find out if you are eligible to have your case accepted by the court. Choose an attorney who takes time to talk to you and answer questions. You should maintain contact through the repayment period also.

After your bills are gathered an amount will be set for the monthly payments. The payments are made to a trustee of the court. He or she pays the creditors a specific amount each month. You may be granted three to five years to complete the payments.

The court stops all garnishments and harassing phone calls from the companies you owe money to. You can stop a foreclosure on your house. You can reclaim a vehicle that was repossessed. However, these things must be done quickly. For example, if your vehicle has already been resold you will not get it back.

You are given the opportunity to catch up on house and car payments. All other bills owed are handled in a different way. The personal loans, credit cards and medical bills are charged a lower rate of interest as they are being repaid.

This is beneficial to you to have all interest stopped when your bankruptcy case is accepted by the court. Back taxes, back child support and alimony can be caught up on over time. Some debt may be dismissed and others accept partial payment.

No corporations are eligible to file a chapter 13 bankruptcy. It is intended to help consumers and some small businesses only. This way to clear up all debt is fair to both yourself and the creditors who will be repaid. It is an equitable way to settle all your outstanding debt.




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